Category: Personal Development Written by Emma Wilson
We know that the current economy is not favorable. There is every reason to think about the future. Although we all need to survive in the present, it is necessary to think about the future as well. Investing for your family's future is a mandatory step to ensuring that they live comfortably in the days to come.
Whether you are employed or in business, you must have seen that things have been changing drastically. Safeguarding your future requires both financial and mental preparedness. You may as well need to undertake other sacrificial precautions when spending and the things you acquire presently. Everything you do at this hour determines how your tomorrow will be.
The same family you are taking care of at this time needs you in the future when your business turns unsustainable. Your current salary cannot sustain your family needs in a few years to come either. While it is a nice idea to give your family a comfortable life now, it is better to think about where they will be and how they will live in days to come. That is why financial planning is necessary as soon as now.
These seven ways can help you to safeguard your family’s future.
1. Secure a Home for Your Family
Staying in a rented house is not and will never be a good idea in the current and upcoming situations. While renting can help you to start up and work toward a goal, it is essential to think about how your family will live in the coming days.
Firstly, when looking from a long-term perspective, renting is more expensive than owning a home. Even if you have to spend everything you have so far, you will relieve yourself of the burden of renewing the tenure and focusing on planning your finances.
The second reason why you should buy a home as soon as possible is that you cannot be sure about tomorrow. Having a place to call home is important for every family. In case you lose your job or any condition causes you to be unable to work, your income flow will stop. That will mean that you will not be in the position to pay your rent. Nobody wants his family to be thrown into the street because they cannot pay for their shelter.
Each day brings new changes. However, we know that real estate is appreciating all the time. Buying a home as soon as now means that you can secure it at the cheapest rate possible. That means that you can only save money from real estate acquisition by acting the soonest. The step also reduces your financial constrictions in the future.
2. Pay Off Your Debts
Is borrowing bad? Yes and no. Borrowing for emergency fixes is a good credit, which you should pay as soon as you get the money. Habitual borrowing to facilitate non-emergency expenses is, however, a bad habit. Each loan you take requires repayment with interest. Personal consumer loans may charge reasonable interest, but that is the encouraging reason why people stay in debt for long, impacting their financial abilities and goals.
Using your credit card for occasional expenses can help you to build your credit score. However, their interest charges are hefty, and you should try to clear them at the end of each month. Holding a bad credit score will hinder you from accessing emergency loans that could help you when in survival mode. But, worse still, bad credit means that loans you apply in the future attract a higher interest.
Apart from essential expenses, you should try to avoid borrowing more and focus on repaying existing loans. It is a good idea to repay loans before you think about saving. Interest earned on money you save is measly when compared to the interest you pay on the money you owe various institutions. You need to create a strategy to clear your loans as soon as possible. You can forfeit any non-emergency or unnecessary expenses to repay your existing debts.
3. Plan for Emergencies
Tomorrow is unpredictable, yet we need to be prepared as though we know what is coming. Unprecedented circumstances can plunge you into a financial crisis. Even if you have sufficient money for catering for your family and do stuff presently, you should not rely on your income to care for emergency cases. What if something awful happens before your payday?
The most reliable way you can secure your family’s financial needs when a crisis hits is setting apart emergency funds. Scrambling left and right trying to find financial aid when an emergency finally knocks becomes crazy. The worst is when you have to agree to dubious terms for the urgent need at hand. That is a sure way to ensnare yourself and remain a full-time debtor.
While things are in the right order, keep your family ahead of acquaintances and buddies. After paying the essential bills and setting aside money for domestic expenses, you will remain with some cash. Instead of taking friends out every end-month, you should try to save the remaining money. Open a fixed account to cater for the needs, and only request access to your funds when you are in serious need. Whatever remains can help you with miscellaneous expenses out there with your friends.
4. Insurance Protection
Have you taken any insurance? Maybe no, because you are not sure what you should insure. Since circumstances change in any area of this life, it is essential to protect your family’s future in all ways you can. Various insurances help to keep your family safe regardless of the type of inconvenience that arises abruptly.
After acquiring a home for your family, you should protect it so that any time things go south, they can have somewhere to shelter. If a natural disaster comes and sweeps your property, your insurance will help you erect or buy a new home.
You also need to protect your income. Whether you are employed on a monthly wage or run a business for your family, you should think of ensuring it. When something bad happens and affects your income, you will receive your insurance benefits to take care of your family. Be sure to research the policies and the terms involved. Consider involving your family lawyer when choosing an insurance premium for your income protection.
Another option that will help your family’s future is life insurance. When you insure your life, you secure your family’s income in case you die at any time. Your dependents will continue receiving the income you used to receive so that they can continue with their daily life. One advantage of whole life insurance from a globe life and accident insurance company is that you can use your premiums to obtain a loan or withdraw it.
5. Invest in Long-term Assets
While keeping money in banks can give you interest over time, the interest is sometimes negligible when you consider that inflation makes money to lose its value. I am not saying that you should stop saving. You need the money that you can access immediately when you meet a crisis. That is why you need the emergency savings.
However, your future does not need static money. Let your wealth grow so that when you cannot work anymore, you have something to take care of your family in your old age. The best way to do that is by investing your income in assets that guarantee growth. Of course, not every investment is guaranteed to make you rich easily.
Business can help you to get food on the table for the family, but that is it. What about when things get harder and businesses close down? Over the years, there has been a myriad of investment opportunities. Studying trends and history of various investment options will help you to make the right decisions about where to invest. The advantage of asset investment is that they grow with time, and you can sell your shares or property to have money to sort out your family when you grow old.
6. Invest in Yourself
Ask everyone and they will tell you that the best form of investment is to better your abilities. Employability is volatile. As fresh graduates saturate the market and jobs become scarce, you would wonder where they will get employment. The sad news is that they are about to replace you. Companies are looking for vibrant and motivated workers to fill in their posts.
However, while young graduates are ever hungry to get employed without demanding high payments, it is essential to remember that skills matter for every employer. People with a higher educational profile get the first consideration in the job industry. Provided that you can deliver and help the company to grow, payment is not a problem.
There is also an advantage in advancing your education while working at your current company. Your employer will not want to lose you if they trust you. The idea of going back to school to advance your education will make them happier. With better skills, you can land a better job in case your current company closes down. In all you do, ensure that you stay relevant and employable as long as you have not gone past the retirement age. That will help you secure an income for the family even as jobs become hard to come by.
7. Draw Your Will the Earliest
Whatever you have belongs to your family. If you pass on, your dependents will take over your estate and property. However, this can only happen if they are aware of your investments and property. A ready testament about how you intend to share your property will make the inheritance process easier.
Because nobody knows when their day comes, you should ensure that you do not die without a will. If this happens, your loved ones may end up getting nothing and what you owned might land in the hands of someone you never intended to give it to. People will raise to claim that they are your closest relations because they want to grab whatever you had acquired in your lifetime.
You should not wait until you finish buying properties or meeting your savings and investment goals before writing a will. Start preparing your will as early as possible. In case you decide to sell some of your property or you acquire more wealth, you can always edit the will to include the latest articles that you own. Your family attorney will help you prepare everything in readiness to protect your loved ones' future.
Times are hard. Providing for the family and meeting other needs is not easy for everyone. However, things can get worse if you do not plan to sustain the future of your family. When old age arrives, or in case of an accident or death, your family can suffer. But when you plan about their financial future, they will have something to keep them going even when you cannot provide. With these simple tips, you can protect your family from any constrictions in days to come.
This article was submitted exclusively to CrystalWind.ca by Emma Willson.
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